Question: e . Again, just looking at the highest CLV segment, suppose that instead of spending the whole $ 1 5 0 , 0 0 0

e. Again, just looking at the highest CLV segment, suppose that instead of spending the whole $150,000 on the ad buy, GoldBelly decided to spend a portion on ads, and some towards coupons. Of course, not everyone will redeem the coupon, but they expect to gain at least 600 of those customers with an offer of a $10 coupon0, or at least 4,500 if they offer a $5 coupon. Assuming that spending the $150,000 on advertising would have brought in 3,000 customers:
i. Calculate the new CLV for each option [3]:
1. $150,000 on ads
2. $100,000 on ads and a $10 coupon
3. $115,000 on ads and a $5 coupon

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!